Breakdown Insurance for Used Cars: What You Need to Know

But here’s the key: while MBI can work for some drivers, an extended warranty or vehicle service contract (VSC) is often a smarter, more flexible option.

What Is Breakdown Insurance for Used Cars?

Mechanical breakdown insurance is usually offered by auto insurance companies as an optional add-on for used cars. It helps pay for certain mechanical failures once your manufacturer’s warranty runs out.

Typical coverage includes:

• Engine

• Transmission

• Drivetrain components

• Electrical systems

It may sound similar to an extended warranty, but there are important differences—especially for used car owners.

Limitations of Breakdown Insurance for Used Cars

MBI has its place, but it comes with restrictions that don’t always make sense if you drive a used vehicle:

• Age & Mileage Limits – Often only available for newer cars under certain mileage.

• Coverage Gaps – Tends to be narrower than warranty coverage.

• Insurance Tied – If you switch auto insurers, your MBI coverage may end.

• Fewer Benefits – Often lacks extras like roadside assistance or rental car reimbursement.

Why Extended Warranties and VSCs Work Better for Used Cars

For most used car owners, an extended warranty (vehicle service contract) is a smarter investment than MBI. Here’s why:

1. Covers Older Cars – Available for higher-mileage and older vehicles.

2. Broader Protection – With exclusionary coverage, nearly everything is covered except wear-and-tear and routine maintenance.

3. Extra Benefits – Roadside assistance, rental car coverage, and trip interruption come standard with many plans.

4. Transferable – Adds resale value if you sell your vehicle.

5. Flexibility – Choose your own repair shop, instead of being limited to a small network.

Cuvrd for The Win!

Through a trusted Cuvrd partner, you can get a reliable vehicle service contract tailored for your used car. These plans are vetted for transparency, claims support, and real-world value—so you’re protected when you need it most.

Bottom Line

Breakdown insurance for used cars can sound appealing, but it’s often limited and tied to your auto insurance provider. For most drivers, a vehicle service contract (extended warranty) offers better coverage, more benefits, and greater flexibility—making it the smarter choice for peace of mind.

If you want real protection for your used car, skip the limitations of MBI and go with an extended warranty through a trusted Cuvrd partner.